Juicy Estates: Mortgage Blog

5% Down Conventional Financing Is Back!

This just announced, we are now able to provide conventional financing with just a 5% down payment.  For the past few years the mortgage insurance companies all required at least 10% down but as the South Florida real estate market recovers mortgage insurers are coming back into town.

These conventional financing products should prove to be a more efficient alternative to FHA financing as no upfront mortgage insurance premium is required.  Currently a 30 year fixed rates for this loan program will be about 5.125% with no points or origination fees and the 5/1 ARM is about 4.25%!

To qualify for this financing the buyer and property must meet the following criteria:

• Primary Residences
• Purchase or rate and term refinance only
• 680 minimum credit score
• 1-unit properties only
• Up to $417,000 loan amount
• 41% max debt to income ratio
• 2 months PITI in reserves after closing
• No condos or attached housing in Florida

In additional signs of the recovery down payment and or equity requirements have been lowered for jumbo loans as well providing some much needed relief to the luxury market.

This entry was posted on Tuesday, April 27th, 2010 at 6:20 am and is filed under Home, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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